The biggest market of them all Christopher Knell FRSA MIOD MAAT CPFA - - PowerPoint PPT Presentation

The biggest market of them all

Christopher Knell FRSA MIOD MAAT CPFA Business Partner Finance Training and Improvement Westminster City Council

• 12 years experience in the Public Sector

– Business Partner Finance Training and Improvement at Westminster City Council

• 8 years experience in the Voluntary Sector

– Treasurer of Headway East London – Fellow of the RSA and co-author of ‘The Failure Files’

• 6 years experience in the Private Sector

– Vice-Chair of the Institute of Directors, Young Directors Forum – G20 summit delegate representing the UK and young entrepreneurs

About the speaker

Hands up if you are employed by or work for the public sector? Hands up if you provide products to the public sector?

The biggest market of them all

• Understand the breadth and scope of the

public sector

• Understand how local government supports

the business community

• Recognise the opportunities that Shared Service

Centres and Business Partners provide for you

The biggest market of them all Objectives

• Understand the breadth and scope of the

public sector

The biggest market of them all Objectives

Breadth and scope of the public sector Westminster

Breadth and scope of the public sector - Westminster

Total General Fund Income 2012/13 £880m

Council Tax £49m 5% Redistributed Business Rates & Revenue Support Grant £183m 21% Trading and Other income £200m 23% Specific Grants & Contributions £448m 51%

Breadth and scope of the public sector - Westminster

Total General Fund Expenditure 2012/13 £880m

Library & Leisure Services £14m 1% Strategic Support £16m 2% Corporate £23m 2% Parking £23m 3% Corporate Property £25m 3% Built Environment £25m 3% Finance and Operations £60m 7% City Management £78m 9% Adult Services £141m 16% Childrens Services £166m 18% Housing General Fund £323m 36%

Breadth and scope of the public sector - Westminster

The council has about £2.2billion of assets on its balance sheet Including over £1billion of housing stock.

• Westminster covers

just 8 ¼ square miles

• Greater London

@ 600 square miles +32 London Boroughs

Breadth and scope of the public sector- Greater London

• Westminster covers

just 8 ¼ square miles

• United Kingdom

@ 94,000 square miles + 400 Local Authorities + 500 Health Trusts + 25,000 Schools and education establishments

Breadth and scope of the public sector - United Kingdom

How much do you think the public sector spent in 2011/12?

• £695 billion http://www.hm-treasury.gov.uk/pespub_natstats_july2012.htm
• 47.3%

(nominal gross domestic product)

• 48.6%

Peak in late 70’s

• 38.8%

Trough in late 80’s

Breadth and scope of the public sector

What services aren’t provided by the public sector?

• “From Vermin to Vice”

Pest control to licensing

• “Ultra vires”

Outside the scope of the public sector (Beyond the powers)

Breadth and scope of the public sector

Hands up if its not provided by the public sector? Sport?

2012 Olympics (£2bn of £9.3bn from the public purse)

Theatre?

Lincolnshire Council sold off ‘Theatre Royal’ in 2010

MOT?

Nearly 100 Uk council test centres nation wide

Gambling?

UK government sells Tote (high street betting shops) to Betfred in 2011

Art?

Hackney council selling Henry Moore sculpture worth £20m

Airport?

Welsh assembly buys Cardiff airport for £52m in 2013

Breadth and scope of the public sector

How many people are employed by the public sector?

• 5.6 million people are directly employed

Down from circa 6 million

• Public, Private or Voluntary

Your people are the most valuable resource you have

• Public sector has an exceptional record for supporting staff development

15% of finance staff at Westminster are currently studying

Breadth and scope of the public sector

• Do you have a better understanding of the

breadth and scope of the public sector?

• Understand how local government supports

the business community

• Recognise the opportunities that Shared Service

Centres and Business Partners provide for you

The biggest market of them all Objectives

• Understand how local government supports

the business community

The biggest market of them all Objectives

Hands up if you have provided goods or services for the public sector?

• Supporting the business community isn’t all about advice
• £695 billion was spent by the public sector in 2011/12
• Private sector suppliers make up a significant proportion of this,

from stationery to staffing.

Supporting the business community

• Key Partners for Westminster City Council
• Serco (formally Vertex)
• Enterprise
• Veolia
• City West Homes (CWH)
• Capita
• Cap Gemini
• Greenwich Leisure Limited (GLL)
• STATS TO FOLLOW ON SME’s

Supporting the business community

The UK government has 4 aims to help the economy to grow:

• To create the most competitive tax system in the G20
• To make the UK the best place in Europe to start,

finance and grow a business

• To encourage investment and exports as a route

to a more balanced economy

• To create a more educated workforce that is the

most flexible in Europe

Supporting the business community

• https://www.gov.uk/browse/business
• http://www.manchester.gov.uk/info/100002/business_support
• http://www.westminster.gov.uk/services/business/

Hands up if you’ve used one of these websites?

Supporting the business community

Supporting the business community

https://www.gov.uk/browse/business

Supporting the business community

http://www.manchester.gov.uk/info/100002/business_support

Supporting the business community

http://www.westminster.gov.uk/services/business/

• Business information points in Westminster Libraries

– Advice, market research, networking and talks

• Padding Development Trust

– Small grants and loan support, business advisors and coaching

• Portobello Business Centre

– Support for start-ups and established business looking to expand

Supporting the business community

• Hub Westminster

– Business facilities, workshops and networks to support collaboration

• Westminster Business Council

– Member workshops and networking

• Westminster Enterprise Centre

– Free confidential business advice

Supporting the business community

Other business support accessible via Westminster:

• Capital Enterprise
• CENTA Business Services
• London Development Agency
• London Chamber of Commerce
• Prince’s Trust Enterprise Programme

Supporting the business community

Hands up if you intend to check out your local councils website if you have a business or are interested in starting one?

Supporting the business community

Business Rates Retention

• Why is local government so active in supporting the business

community?

• Council’s collect NNDR (business rates) for Central Government
• April 2013: Business Rates Retention
• “The levy is designed to ensure that the more councils grow their

business rates, the more they benefit”

Supporting the business community

Redistributed Business Rates & Revenue Support Grant £183m 21%

Business Rates Retention

• Westminster City Council collects
• ver £2,000m but keeps £183m
• If a councils increases their

business rates they get to keep more

• Funds which can be spent on the local community

Supporting the business community

• Understand the breadth and scope of the

public sector

• Do you have a better understand how local government

supports the business community?

• Recognise the opportunities that Shared Service

Centres and Business Partners provide for you

The biggest market of them all Objectives

• Recognise the opportunities that Shared Service

Centres and Business Partners provide for you

The biggest market of them all Objectives

Hands up if you work in or employ Shared Service

Centres or Business Partners?

Shared Services & Business Partnering

• What are Shared Services Centres?

A centralised team with standardised processes including:

• Transaction processing
• Making and receiving payments
• Accounting and financial reporting routines
• What are Business Partners?

Finance professionals who supports and advises business areas:

• Interpreting and explaining financial information
• Supporting and influencing decision making
• Advising on risks, opportunities and mitigations

Shared Services & Business Partnering

Barbara Moorhouse, Chief Operating Officer Westminster City Council July 2011 Our ‘Finance Foundations’ project will introduce a new operating

• model. It will provide a platform for improving financial management,

with more professional and commercial support to managers and new best practice (standardised) processes.

Shared Services & Business Partnering

Shared Services & Business Partnering

Shared Service Centre

Transactions processing Best practice

Corporate Finance

Annual accounts Strategy

Finance Business Partners

Support and challenge

Business Improvement

Continuous improvement Effective communications

Business Units

Budget monitoring and forecasting

Shared Services & Business Partnering

Expert services

(Corporate Finance)

Finance leadership

(Business Partners)

Shared service centre Financial support Strategic Operational Centralised Embedded

Shared Services & Business Partnering

Analytics (Informing) Accounting (Transactions) Accounting (Transactions)

Shared Services & Business Partnering

Advice (Deciding) Accounting (Transactions) Analytics (Informing) Analysis (Reporting)

Who uses Finance Business Partners?

– It’s not new and it’s not uncommon

• Private Sector
• Public Sector
• Voluntary Sector

Shared Services & Business Partnering

• Why does this matter to you? As an employer

– Productivity boost enabling improved service levels or reduced staffing – Service resilience from increasing use of generic skills and processes – Improved commercial decision making with Business Partnering

• Why does this matter to you? As an employee

– Consistency and standardisation allow greater productivity – Rotation within service areas provides a wider variety of knowledge – Personal and career development improved within larger centralised teams

Shared Services & Business Partnering

What should I you do to find out more?

– Check if your organisation has or is developing Shared Services & Business Partnering – Ensure your CPD includes the skills you need to get maximum benefit from Shared Services & Business Partnering – Research SS&BP in more detail: Deloitte “Finance Business Partnering being one step ahead” CIMA “Improving decision making in organisations”

Shared Services & Business Partnering

• Understand the breadth and scope of the

public sector

• Understand how local government supports

the business community

• Do you recognise the opportunities that Shared Service

Centres and Business Partners provide for you?

The biggest market of them all Objectives

Final questions?